According to former Mexican President Vicente Fox, legal recreational cannabis could be legal in Mexico by next week.
Mexico has a great climate for cultivating cannabis and it could be one of the world’s largest cannabis markets. During the last year, we have seen an influx in the number of companies that are focused on the Mexican cannabis market and this is a trend that our readers should be aware of.
Canopy Growth Corporation (WEED.TO) (CGC) is the largest global cannabis company and has the most market share in Canada. The company is backed by Constellation Brands (STZ) which owns the Corona beer brand. Constellation has invested more than $4 billion into Canopy Growth and we are favorable on the infrastructure that Constellation has in Mexico.
Due to the nature of the relationship with Constellation Brands, Canopy Growth would have a significant amount of infrastructure in Mexico as soon as the plant is declared to be legal and we expect it to be a major beneficiary of a change in legislation.
The bill that Fox is referring to is backed by the administration of President Andres Manuel Lopez Obrador. The passing of the legislation would mark a major shift in a country that has been negatively impacted by violence between drug cartels.
Fox has been a long-standing advocate for the decriminalization of cannabis in Mexico and we are favorable on how he has supported the sector. He told Reuters that he is receiving direct information from the lawmakers that is considered to trustworthy and we expect legalization to be a major catalyst for the cannabis industry.
According to a study that was conducted by Grand View Research, the global legal market for cannabis could be worth $73.6 billion by 2027. With markets like Mexico advancing legal cannabis legislation, we believe the size of the cannabis market could be larger than what Grand View predicts and will monitor how the sector evolves from here.
Over the next year, we expect to see large-scale US and Canadian cannabis operators expand into Mexico and this is a trend that our readers need to be aware of. If you want to learn more about the companies like Aurora Cannabis which are trying to capitalize on the Mexican medical cannabis market, please send an email to [email protected] with the subject “Mexican Cannabis Companies” to be added to our distribution list.